Earnings Per Share

9 Months Ended

Sep. 30, 2022

EARNINGS PER SHARE

Basic and diluted net income (loss) per share of Class A common stock is presented below:


	Three Months Ended September 30,				Nine Months Ended September 30,
(In millions, except per share amounts)	2022		2021		2022		2021
Net income (loss)	$	(9)	$	16	$	(766)	$	(666)
Less: Net income (loss) attributable to noncontrolling interests	8		8		17		(154)
Net income (loss) attributable to Baker Hughes Company	$	(17)	$	8	$	(783)	$	(512)

Weighted average shares outstanding:
Class A basic	1,008		851		983		799
Class A diluted	1,008		857		983		799
Net income (loss) per share attributable to common stockholders:
Class A basic & diluted	$	(0.02)	$	0.01	$	(0.80)	$	(0.64)

Shares of our Class B common stock do not share in earnings or losses of the Company and are not considered in the calculation of basic or diluted earnings per share ("EPS") above. As such, separate presentation of basic and diluted EPS of Class B under the two class method has not been presented. The basic weighted average shares outstanding for our Class B common stock for the three months ended September 30, 2022 and 2021 were 7 million and 191 million, respectively, and 38 million and 242 million for the nine months ended September 30, 2022 and 2021, respectively. The basic weighted average shares outstanding for both our Class A and Class B common stock combined for the three months ended September 30, 2022 and 2021 were 1,015 million and 1,042 million, respectively, and 1,021 million and 1,041 million for the nine months ended September 30, 2022 and 2021, respectively.

An exchange agreement exists between GE, BHH LLC, and us, ("Exchange Agreement") where GE is entitled to exchange its holding in our Class B common stock, and associated LLC Units, for Class A common stock on a one-for-one basis (subject to adjustment in accordance with the terms of the Exchange Agreement) or, at the option of Baker Hughes, an amount of cash equal to the aggregate value (determined in accordance with the terms of the Exchange Agreement) of the shares of Class A common stock that would have otherwise been received by GE in the exchange. In computing the dilutive effect, if any, that the aforementioned exchange would have on net income (loss) per share, net income (loss) attributable to holders of Class A common stock would be adjusted due to the elimination of the noncontrolling interests associated with the Class B common stock (including any tax impact). For the three and nine months ended September 30, 2022 and 2021, such exchange is not reflected in diluted net income (loss) per share as the assumed exchange is not dilutive.

For the three months ended September 30, 2022 and the nine months ended September 30, 2022 and 2021, we excluded all outstanding equity awards from the computation of diluted net loss per share because their effect is antidilutive. For the three months ended September 30, 2021, Class A diluted shares include the dilutive impact of equity awards except for approximately 5 million options that were excluded because the exercise price exceeded the average market price of the Class A common stock and is therefore antidilutive.